Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Reconstructing there so please focus A loan is repayable by annual instalments in arrear for 20 years. The invitat instalment is 5,000, with each subsequent

Reconstructing there so please focus

image text in transcribed

A loan is repayable by annual instalments in arrear for 20 years. The invitat instalment is 5,000, with each subsequent instalment decreasing by 200 The effective rate of interest over the period of the loan is 4% per annum La Calculate the amount of the original loan 13; Calculate the capital repayment in the 12th instalment 131 After the 12h instalment is paid, the borrower and lander agree to a restructuring of the debt. The 200 reduction per year will no longer continue instead, future instalments will remain at the level of the 12 instalment and the remaining term of the debt will be shortened. The final payment will then be a reduced amount which will clear the debt. hy for Calculate the remaining term of the revised loan. or calculate the amount of the final reduced payment. Ves Calculate the total interest paid during the term of the loan. 18 Total 14

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions